A machine valued at N20,000 depreciates by 10% every year. What will be the value of the machine at the end of two years?

A machine valued at N20,000 depreciates by 10% every year. What will be the value of the machine at the end of two years?

Answer Details

Since it depreciates by 10% At the end of first year, its value = 90% of 20000
= $\frac{90}{100}$ x 20000 =18000
At the end of second year, its value = 90% of 18000
= $\frac{90}{100}$ x 18000 = ₦16,200